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LAW

On property auction

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Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Law on Property Auction.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Law prescribes principles, order and procedures for property auction; auctioneers and property auction organizations; remuneration for auction services and property auction expenses; handling of violations, cancellation of property auction results and compensations for damage; and the state management of property auction.

Article 2. Subjects of application

1. Auctioneers, property auction organizations and property auction councils.

2. The wholly state-owned organization established by the Government to settle non-performing loans of credit institutions.

3. Auctioned property sellers, bidders, winning bidders and auctioned property buyers.

4. Other individuals and organizations involved in property auction activities.

Article 3. Application of the Law on Property Auction and provisions on property auction order and procedures of other laws

1. In case there is a difference between the provisions on property auction order and procedures of this Law and of other laws, those of this Law shall prevail, except the case specified in Clause 2 of this Article.

2. The auction of securities shall be carried out in accordance with the law on securities; the auction of state property located overseas shall be carried out in accordance with the law on management and use of state property.

Article 4. Property to be auctioned

1. Property required by law to be sold through auction, including:

a/ State property as defined by the law on management and use of state property;

b/ Property over which ownership by the entire people is established in accordance with law;

c/ Property being land use rights as defined by the land law;

d/ Collateral as defined by the law on secured transactions;

dd/ Property for judgment enforcement as defined by the law on enforcement of civil judgments;

e/ Property being exhibits or means used in administrative violations which are forfeited into the public funds, property distrained to secure the execution of administrative sanctioning decisions in accordance with the law on handling of administrative violations;

g/ Property being national reserve goods as defined by the law on national reserves;

h/ Fixed assets of enterprises as defined by the law on management and use of state capital invested in production and business at enterprises;

i/ Property of enterprises and cooperatives declared bankrupt in accordance with the law on bankruptcy;

k/ Property being road infrastructure facilities and the right to collect charges for use of road infrastructure facilities in accordance with the law on management, use and operation of road infrastructure facilities;

l/ Property being the mining right in accordance with the mineral law;

m/ Property being the right to use or own planted production forests in accordance with the law on forest protection and development;

n/ Property being the right to use radio frequencies in accordance with the law on radio frequencies;

o/ Property being non-performing loans and collateral for such non-performing loans of the wholly state-owned organization established by the Government to settle non-performing loans of credit institutions in accordance with law;

p/ Other property required by law to be sold through auction.

2. Property owned by individuals and organizations which will be sold through auction of their own free will according to the order and procedures prescribed in this Law.

Article 5. Interpretation of terms

In this Law, the terms and expressions below shall be construed as follows:

1. Bid increment means the minimum amount by which a bid will be raised each time the current highest bid is outdone in case of ascending-price auction. A bid increment shall be decided and notified in writing by the auctioned property seller to the property auction organization upon each auction session.

2. Property auction means a method of selling property involving two or more bidders according to the order and procedures prescribed in this Law, except the case specified in Article 49 of this Law.

3. Reserve price means the minimum starting price of a to be-auctioned property in case of ascending-price auction or the maximum starting price of a to be-auctioned property in case of descending-price auction.

4. Bid decrement means the minimum amount by which the next bid must fall from the current highest bid in case of descending-price auction. A bid decrement shall be decided and notified in writing by the auctioned property seller to the property auction organization upon each auction session.

5. Auctioned property seller means an individual or organization that owns a property item to be auctioned or a person authorized by a property owner to sell a property item through auction or person having the right to put a property item for auction under an agreement or in accordance with law.

6. Auctioned property buyer means a winning bidder that enters into a contract for purchase and sale of an auctioned property item or has property auction results approved by a competent agency.

7. Bidder means an individual or organization qualified for participating in an auction to buy the auctioned property in accordance with this Law and other relevant regulations.

8. Winning bidder means an individual or organization that makes the highest bid compared to the reserve price or a bid equal to the reserve price if no bid higher than the reserve price is made in case of ascending-price auction; or an individual or organization that accepts the reserve price or decreased price in case of descending-price auction.

9. Descending-price auction means a method of auction in which the auctioneer lowers the asking price until a bidder willing to accept the auctioneer-set price is called.

10. Ascending-price auction means a method of auction in which bidders make their bids in an ascending order until the highest bidder is called.

11. Auctioned property means a property allowed to be traded in accordance with law.

12. Property auction organizations include property auction service centers and property auction businesses.

Article 6. Principles for property auction

1. Compliance with law.

2. Assurance of independence, honesty, publicity, transparency, equality and objectivity.

3. Protection of lawful rights and interests of auctioned property sellers, bidders, winning bidders, auctioned property buyers, property auction organizations and auctioneers.

4. Auctions shall be conducted by auctioneers, except those conducted by property auction councils.

Article 7. Protection of lawful rights and interests of bona fide auctioned property sellers, bidders, winning bidders and auctioned property buyers

1. Competent state agencies shall, within the ambit of their tasks and powers, guarantee the exercise of lawful rights and interests of bona fide auctioned property sellers, bidders, winning bidders and auctioned property buyers.

2. In case there is a third party disputing for the ownership of an auctioned property item, such ownership shall still belong to the bona fide auctioned property buyer.

The settlement of a dispute over the ownership of an auctioned property item, a complaint or lawsuit about the legal validity of a successful auction, and the cancellation of property auction results prescribed in Clauses 2, 3 and 4, Article 72 of this Law shall be effected according to summary procedures prescribed by the civil procedure law.

3. In case there is a judgment or decision of a competent state agency on partial modification or whole cancellation of decisions related to a property item before such property is put for auction but the property auction order and procedures still comply with this Law, such property shall still be under the ownership by the bona fide buyer, except where the property auction results are cancelled under Article 72 of this Law.

Article 8. Reserve price and appraisal of property to be auctioned

1. The reserve price of an auctioned property item shall be determined before:

a/ The signing of a property auction service contract;

b/ A property auction council is formed, unless otherwise provided by law;

c/ The wholly state-owned organization established by the Government to settle non-performing loans of credit institutions conducts by itself the auction.

2. The reserve price of an auctioned property item shall be determined as follows:

a/ For the types of auctioned property specified in Clause 1, Article 4 of this Law, their reserve prices shall be determined under the relevant regulations applicable to such types of property;

b/ For the types of auctioned property specified in Clause 2, Article 4 of this Law, their reserve prices shall be determined by their sellers or by property auction organizations or other individuals or organizations as authorized by their sellers.

3. An auctioned property item shall be appraised in accordance with law or at the request of bidders and with the consent of its seller. The appraisal order and procedures must comply with the relevant regulations applicable to relevant types of property. In case of appraisal upon request, the requester shall pay appraisal expenses.

Article 9. Prohibited acts

1. Auctioneers are prohibited to commit the following acts:

a/ Letting other individuals or organizations use their auction practice certificates;

b/ Taking advantage of their capacity as auctioneers to act for the self-seeking purpose;

c/ Colluding or being in cahoots with auctioned property sellers, bidders, price assessment organizations, auctioned property appraisal organizations and other individuals or organizations to falsify information about auctioned property, suppress prices, falsify auction dossiers or property auction results;

d/ Illegally preventing individuals and organizations from participating in auctions;

dd/ Violating the professional code of ethics of auctioneers;

e/ Committing other prohibited acts prescribed by relevant laws.

2. Property auction organizations are prohibited to commit the following acts:

a/ Letting other organizations use their names or operation registration certificates for auction practice;

b/ Colluding or being in cahoots with auctioned property sellers, bidders, price assessment organizations, auctioned property appraisal organizations and other individuals or organizations to falsify information about auctioned property, suppress prices, falsify auction dossiers or property auction results;

c/ Obstructing or causing difficulties to bidders in registering their participation in an auction or participating in an auction;

d/ Disclosing information about registered bidders for the self-seeking purpose;

dd/ Receiving from auctioned property sellers any money amount, property or benefit other than auction service remuneration or property auction expenses as prescribed by law or other service charges related to auctioned property as agreed upon;

e/ Committing other prohibited acts as prescribed by relevant laws.

3. Property auction councils are prohibited to commit the acts prescribed at Points b, c, d and e, Clause 2 of this Article.

4. Auctioned property sellers are prohibited to commit the following acts:

a/ Colluding or being in cahoots with auctioneers, property auction organizations, and other individuals or organizations to falsify information about auctioned property, suppress prices, falsify auction dossiers or property auction results;

b/ Receiving from auctioneers, property auction organizations or bidders any money amount, property or benefit in order to falsify property auction results;

c/ Committing other prohibited acts as prescribed by relevant laws.

5. Bidders, winning bidders and other individuals and organizations are prohibited to commit the following acts:

a/ Providing untruthful information and documents; using forged papers to register their participation in an auction or to participate in an auction;

b/ Colluding or being in cahoots with auctioneers, property auction organizations, auctioned property sellers, other bidders and other individuals or organizations to suppress prices or falsify property auction results;

c/ Obstructing property auction activities; disturbing or causing disorder at an auction;

d/ Intimidating or forcing auctioneers or other bidders to falsify property auction results;

dd/ Committing other prohibited acts as prescribed by relevant laws.

Chapter II

AUCTIONEERS, PROPERTY AUCTION ORGANIZATIONS

Section 1

AUCTIONEERS

Article 10. Criteria for auctioneers

An auctioneer must fully satisfy the following criteria:

1. Being a Vietnamese citizen permanently residing in Vietnam, abiding by the Constitution and law, and possessing good ethical quality;

2. Possessing a university or postgraduate degree in law, economics, accounting, finance or banking;

3. Having graduated from an auction training course prescribed in Article 11 of this Law, except where he/she is exempted from such a course under Article 12 of this Law;

4. Having passed the examination of auction practice internship results.

Article 11. Auction training

1. A person who fully satisfies the criteria prescribed in Clauses 1 and 2, Article 10 of this Law and has worked in the trained field for at least 3 years may join an auction training course.

2. The duration of an auction training course is 6 months. A person who completes such a course shall be granted an auction training certificate by the auction training institution.

Article 12. Persons exempt from auction training

1. Lawyers, public notaries, bailiff, property management officers or arbiters who have practiced their profession for at least 2 years.

2. Judges, procurators or executors.

Article 13. Auction practice internship

1. Persons possessing an auction training certificate and persons exempt from auction training may be admitted as interns in property auction organizations.

2. The duration of auction practice internship is 6 months and shall be counted from the date a property auction organization notifies the list of its auction practice interns to the provincial-level Justice Department of the locality where it is located.

3. A property auction organization shall assign auctioneers to instruct auction practice interns. Instructing auctioneers shall guide, supervise, and take responsibility for, jobs performed by interns.

Auction practice interns may receive practice skills instructions and perform jobs related to property auction as assigned by their instructing auctioneers and take responsibility before their instructing auctioneers for such jobs. Auction practice interns may not conduct an auction.

4. Persons who have completed their internship duration prescribed in Clause 2 of this Article may take the examination of auction practice internship results.

The examination of auction practice internship results covers auction practice skills, the law on property auction and relevant laws, and professional code of ethics of auctioneers.

5. The examination of auction practice internship results shall be held by the Auction Practice Internship Result Examination Council formed by the Ministry of Justice. The Council is composed of a representative of the Ministry of Justice as its chairperson, and representatives of related agencies and organizations and a number of auctioneers as its members.

Article 14. Grant of auction practice certificates

1. A person who fully satisfies the criteria prescribed in Article 10 of this Law shall send a dossier of application for an auction practice certificate to the Ministry of Justice and pay a charge prescribed by law. Such a dossier must comprise:

a/ An application for an auction practice certificate;

b/ A certified copy or a copy enclosed with the original of the applicant’s university or postgraduate degree in law, economics, accounting, finance or banking;

c/ A certified copy or a copy enclosed with the original of the applicant’s auction training certificate;

d/ A written certification that the applicant has passed the auction practice internship result examination;

dd/ A judicial record card;

e/ A color photo sized 3 cm x 4 cm.

2. Within 15 days after receiving a complete and valid dossier, the Minister of Justice shall decide to grant an auction practice certificate. In case of refusal to grant such certificate, he/she shall state the reason in writing. Persons whose applications for auction practice certificates are rejected may file complaints or initiate lawsuits in accordance with law.

3. An auction practice certificate holder shall be granted an auctioneer card by the provincial-level Justice Department at the request of the property auction organization where he/she practices. His/her auctioneer card shall be revoked when he/she has his/her auction practice certificate revoked under Article 16 of this Law.

The Government shall prescribe in detail the grant and revocation of auctioneer cards.

Article 15. Persons ineligible for grant of auction practice certificates

1. Those who fail to fully satisfy the criteria prescribed in Article 10 of this Law.

2. Career officers or soldiers, national defense workers or public employees in agencies or units of the People’s Army; operational officers or non-commissioned officers, professional or technical officers or non-commissioned officers in agencies or units of the People’s Public Security; cadres, civil servants or public employees, except civil servants or public employees to be granted auction practice certificates to work for property auction service centers.

3. Those who have lost civil act capacity or have civil act capacity restricted or have problems in cognition or behavior control.

4. Those who are examined for penal liability; have been convicted under legally effective judgments; had been convicted but have not yet had their criminal records remitted; or have been convicted for the crime of swindling for appropriating property or corruption, even when their criminal records have been remitted.

5. Those who are subject to the administrative handling measure of being consigned to a compulsory detoxification establishment or compulsory education establishment in accordance with the law on handling of administrative violations.

Article 16. Revocation of auction practice certificates

1. The holder of an auction practice certificate will have such certificate revoked in the following cases:

a/ One of the cases specified in Article 15 of this Law;

b/ He/she has failed to practice auction under Clause 1, Article 18 of this Law for 2 years after being granted the certificate, except where his/her failure is caused by a force majeure event;

c/ He/she is administratively sanctioned in accordance with the law on handling of administrative violations for the act prescribed at Point b or c, Clause 1, Article 9 of this Law;

d/ He/she is willing to quit practicing;

dd/ He/she is declared missing or dead.

2. The revocation of an auction practice certificate shall be carried out according to the following order and procedures:

a/ Within 20 days after receiving information that the auction practice certificate holder falls into one of the cases subject to certificate revocation specified in Clause 1 of this Article, the provincial-level Justice Department of the locality where the organization in which he/she practices is located or where he/she permanently resides in case he/she has not yet commenced practice shall conduct the verification of information;

b/ Within 7 working days after obtaining a ground to believe that the auction practice certificate holder falls into one of the cases subject to certificate revocation, the provincial-level Justice Department shall request in writing the Ministry of Justice to revoke his/her auction practice certificate and relevant papers;

c/ Within 15 days after receiving a written request of the provincial-level Justice Department, the Minister of Justice shall issue a decision to revoke the auction practice certificate. Such decision shall be sent to the certificate holder, organization where he/she practices and provincial-level Justice Department requesting the revocation. In case there are insufficient grounds for certificate revocation, the Ministry of Justice shall notify such in writing to related agencies, organizations and individuals.

Article 17. Re-grant of auction practice certificates

1. A person whose auction practice certificate is revoked under Point a, Clause 1, Article 16 of this Law may be considered for re-grant of such certificate when fully satisfying the criteria prescribed in Article 10 of this Law and the reason for certificate revocation no longer exists.

2. A person whose auction practice certificate is revoked under Point b, Clause 1, Article 16 of this Law may be considered for re-grant of such certificate one year after his/her certificate is revoked.

3. A person whose auction practice certificate is revoked under Point d, Clause 1, Article 16 of this Law may be considered for re-grant of such certificate when he/she so requests.

4. If an auction practice certificate is lost or irreparably damaged, its holder may be considered for re-grant of such certificate.

5. A person whose auction practice certificate is revoked may not be re-granted such certificate in the following cases:

a/ His/her auction practice certificate is revoked under Point c, Clause 1, Article 16 of this Law;

b/ He/she is convicted of the crime of swindling for appropriating property or corruption, even when his/her criminal records have been remitted.

6. A person whose auction practice certificate is revoked under Clause 1 of this Article shall send a dossier of request for re-grant of such certificate to the Ministry of Justice and pay a charge prescribed by law. Such a dossier must comprise:

a/ A written request for re-grant of the auction practice certificate;

b/ Documents proving that the reason for revocation of the auction practice certificate no longer exists;

c/ A color photo sized 3 cm x 4 cm.

7. A person whose auction practice certificate is revoked under Clause 2 or 3 of this Article or falls into the case specified in Clause 4 of this Article shall send a dossier of request for re-grant of such certificate to the Ministry of Justice and pay a charge in accordance with law. Such a dossier must comprise the documents specified at Points a and c, Clause 6 of this Article.

8. Within 10 working days after receiving a complete and valid dossier, the Minister of Justice shall decide to re-grant an auction practice certificate. In case of refusal to re-grant such certificate, he/she shall notify in writing the reason. A person whose request for re-grant of an auction practice certificate is rejected may file a complaint or initiate a lawsuit in accordance with law.

Article 18. Forms of practice by auctioneers

1. Auctioneers may practice in:

a/ Property auction service centers;

b/ Property auction businesses;

c/ The wholly state-owned organization established by the Government to settle non-performing loans of credit institutions.

2. The practice by auctioneers specified at Point a, Clause 1 of this Article must comply with this Law, the law on cadres and civil servants and the law on public employees.

3. The practice by auctioneers specified at Point b, Clause 1 of this Article may be carried out through establishing, participating in the establishment of, or working under labor contracts in, property auction businesses. An auctioneer may establish, or participate in the establishment of, or sign a labor contract with, only one property auction business in accordance with this Law and other relevant regulations.

4. The practice by auctioneers specified at Point c, Clause 1 of this Article must comply with this Law and the labor law.

Article 19. Rights and obligations of auctioneers

1. Auctioneers have the following rights:

a/ To practice throughout the territory of Vietnam;

b/ To directly conduct auctions;

c/ To deprive bidders who commit the acts prescribed in Clause 5, Article 9 of this Law of their right to participate in an auction;

d/ To stop an auction when detecting an act of collusion, suppressing prices or disturbing or causing disorder at the auction, and to notify such to the property auction organization;

dd/ To conduct auctions under contracts between the property auction council and property auction organizations where they practice in case such auctions are held by the council or by the wholly state-owned organization established by the Government to settle non-performing loans of credit institutions;

e/ To instruct and supervise the internship of auction practice interns;

g/ Other rights provided by law.

2. Auctioneers have the following obligations:

a/ To comply with the property auction principles, order and procedures prescribed in this Law;

b/ To comply with the professional code of ethics of auctioneers;

c/ To take responsibility before law and property auction organizations for auctions they conduct;

d/ To take responsibility for jobs performed by auction practice interns whom they instruct under Clause 3, Article 13 of this Law;

dd/ To participate in professional liability insurance prescribed in Article 20 of this Law;

e/ Other obligations prescribed by law.

Article 20. Insurance for professional liability of auctioneers

1. Auctioneers may participate in professional liability insurance through property auction organizations or the wholly state-owned organization established by the Government to settle non-performing loans of credit institutions.

2. Property auction organizations or the wholly state-owned organization established by the Government to settle non-performing loans of credit institutions shall purchase insurance for professional liability of their auctioneers.

Article 21. Socio-professional organization of auctioneers

1. The socio-professional organization of auctioneers is a self-managed organization established to protect lawful rights and interests of auctioneers; provide auctioneers with refresher courses in legal knowledge and practice skills; supervise the observance of the professional code of ethics by auctioneers; and perform other tasks prescribed by the law on associations and its charter.

2. The establishment, organizational structure, functions, tasks and powers of the socio-professional organization of auctioneers must comply with the law on associations and this Law.

Section 2

PROPERTY AUCTION ORGANIZATIONS

Article 22. Property auction service centers

1. Property auction service centers shall be established under decisions of provincial-level People’s Committees.

2. Property auction service centers are public non-business units of provincial-level Justice Departments, have their offices, own seals and bank accounts. Directors of property auction service centers are auctioneers.

Article 23. Property auction businesses

1. Property auction businesses shall be established and organized and operate as private businesses or partnerships in accordance with this Law and other relevant laws.

2. The name of a private auction business shall be given by its owner while the name of an auction partnership may be chosen by its members as agreed upon in accordance with the Law on Enterprises but must include the phrase “private auction business” or “auction partnership”.

3. Conditions for registration of operation of a property auction business:

a/ A private auction business has its owner being an auctioneer who is concurrently its director. An auction partnership has at least one general partner being an auctioneer and its general director or director being an auctioneer;

b/ It has an office, physical foundations and equipment necessary for property auction activities.

4. The activities relating to the establishment, organization, operation and termination of operation of property auction businesses not prescribed in this Law must comply with the law on enterprises.

Article 24. Rights and obligations of property auction organizations

1. Property auction organizations have the following rights:

a/ To provide property auction services in accordance with this Law;

b/ To recruit auctioneers to work for them in accordance with law;

c/ To request auctioned property sellers to provide sufficient and accurate information and papers related to the auctioned property;

d/ To receive auction service remuneration and property auction expenses under property auction service contracts;

dd/ To appoint auctioneers to conduct auctions;

e/ To provide the service of carrying out the procedures for transferring the property ownership, use and management rights and other services related to the auctioned property as agreed upon;

g/ To determine reserve prices of to be-auctioned property prescribed in Clause 2, Article 4 of this Law as authorized by property sellers;

h/ To assign auctioneers to instruct auction practice interns;

i/ To unilaterally terminate or cancel property auction service contracts or request the court to declare property auction service contracts null and void in accordance with the civil law and this Law;

k/ Other rights provided by law.

2. Property auction organizations have the following obligations:

a/ To conduct property auction according to the principles, order and procedures prescribed in this Law and take responsibility for property auction results;

b/ To promulgate a rule of auction under Article 34 of this Law and other relevant laws;

c/ To organize auctions continuously at the notified time and venues, except where it is impossible to do so due to force majeure events;

d/ To request auctioned property sellers to hand over property and relevant title deeds to auctioned property buyers. In case they are authorized by auctioned property sellers to preserve or manage auctioned property, to hand over such property and relevant title deeds to buyers;

dd/ To pay compensations for damage caused during the property auction in accordance with law;

e/ To perform obligations under property auction service contracts;

g/ To keep books to monitor auctioned property and auction registers;

h/ To request provincial-level Justice Departments of localities where they are located to grant or revoke auctioneer cards;

i/ To purchase insurance for professional liability of their auctioneers under Article 20 of this Law;

k/ To report to provincial-level Justice Departments of localities where they are located lists of their practicing auctioneers and auction practice interns;

l/ To report to provincial-level Justice Departments of localities where they are located on their organization and operation on an annual basis or upon request. Businesses that have branches shall also report to provincial-level Justice Departments of localities where their branches register operation;

m/ To fulfill examination and inspection requests of competent state agencies.

n/ Other obligations prescribed by law.

Article 25. Registration of operation of property auction businesses

1. A business that satisfies the conditions prescribed in Article 23 of this Law shall send a dossier of request for registration of property auction operation to the provincial-level Justice Department of the locality where it is located and pay a charge prescribed by law. Such a dossier must comprise:

a/ A written request for operation registration;

b/ The business charter, for an auction partnership;

c/ A certified copy or a copy enclosed with the original of the auction practice certificate of the private auction business’s owner, or the auction practice certificate of the general partner, general director or director of the auction partnership;

d/ Papers proving the existence of the business’s office and written commitments to ensure physical foundations and equipment necessary for the property auction operation.

2. Within 10 working days after receiving a complete and valid dossier, the provincial-level Justice Department shall grant an operation registration certificate to the requesting property auction business. In case of refusal to grant a certificate, it shall notify in writing the reason. The business that has its request for grant of an operation registration certificate rejected may file a complaint or initiate a lawsuit in accordance with law.

3. A property auction business may commence its operation from the date it is granted an operation registration certificate.

Article 26. Change in operation registration contents and re-grant of operation registration certificates of property auction businesses

1. In case a property auction business changes its operation registration contents on its name, address of its head office, branch or representative office or its at-law representative:

a/ Within 10 working days after it decides on the change, the business shall send a written request for the change to the provincial-level Justice Department of the locality where it has made the operation registration;

b/ Within 5 working days after receiving a written request for the change, the provincial-level Justice Department shall decide on the change in operation registration contents for the property auction business. In case of rejection of the request, it shall notify in writing the reason. The business that has its request for the change in operation registration contents rejected may file a complaint or initiate a lawsuit in accordance with law.

2. In case it has decided to change operation registration contents of a property auction business but later detects that information declared in the dossier of request for the change is untruthful, the provincial-level Justice Department shall issue a notice of the business’s violation and cancel the changes previously made in operation registration contents, and at the same time notify such to a competent agency for handling in accordance with law.

3. In case a property auction business requests re-grant of its operation registration certificate which is lost, torn, burnt or otherwise destroyed:

a/ The business shall send a written request for re-grant of such certificate to the provincial-level Justice Department of the locality where it has made the operation registration;

b/ Within 7 working days after receiving the written request, the provincial-level Justice Department shall re-grant the operation registration certificate to the business. In case of rejection of the request, it shall notify in writing the reason. The business that has its request for re-grant of operation registration certificate rejected may file a complaint or initiate a lawsuit in accordance with law.

Article 27. Provision of information on operation registration contents of property auction businesses

Within 7 working days after granting an operation registration certificate or changing operation registration contents of a property auction business, the provincial-level Justice Department concerned shall notify such in writing to the tax office, statistics office and planning and investment office of the locality where the business is located; and publish on its portal the business’s operation registration contents as specified in Clause 1, Article 28 of this Law.

Article 28. Publication of operation registration contents of property auction businesses

1. Within 30 days after being granted an operation registration certificate, a property auction business shall publish on three consecutive issues of a central daily or a daily of the locality where it has made the operation registration the following principal contents:

a/ Its name;

b/ Addresses of its head office, branches and representative offices;

c/ Serial number and date of grant of its operation registration certificate, and place of operation registration;

d/ Full name and serial number of the auction practice certificate of its owner; full names and serial numbers of auction practice certificates of general partners and general director or director of the auction partnership.

2. In case of a change in its operation registration contents, a property auction business shall publicize such change under Clause 1 of this Article.

Article 29. Branches of property auction businesses

1. A branch of a property auction business may be established in or outside the province or centrally run city where such business has made its operation registration. The property auction business shall take responsibility for operation of its branches and appoint an auctioneer to act as the head of the branch.

2. A property auction business shall submit a dossier for registration of operation of its branch to the provincial-level Justice Department of the locality where it is located. Such a dossier must comprise:

a/ A written request for branch operation registration;

b/ The branch establishment decision;

c/ A certified copy or a copy enclosed with the original of the operation registration certificate of the business;

d/ A certified copy or a copy enclosed with the original of the auction practice certificate of the branch head;

dd/ Papers proving the existence of the branch office.

3. Within 7 working days after receiving a complete and valid dossier, the provincial-level Justice Department shall grant an operation registration certificate to the branch. In case of refusal to grant such certificate, it shall notify in writing the reason. The business that has its request for branch operation registration rejected may file a complaint or initiate a lawsuit in accordance with law.

4. A branch shall commence its operation from the date it is granted an operation registration certificate. Within 7 working days after being granted a branch operation registration certificate, a business shall send a written notice enclosed with a copy of the branch operation registration certificate to the provincial-level Justice Department of the locality where it has made its operation registration.

Article 30. Representative offices of property auction businesses

1. A representative office of a property auction business may be established in or outside the province or centrally run city where such business has made its operation registration. Representative offices may not conduct property auctions.

2. Within 5 working days after establishing a representative office, a business shall notify in writing the address of such representative office to the provincial-level Justice Department of the locality where it locates the representative office and provincial-level Justice Department of the locality where it has made its operation registration.

Article 31. Termination of operation of property auction businesses

1. A property auction business shall terminate its operation in the following cases:

a/ It is dissolved;

b/ It is consolidated or merged with another business;

c/ It falls bankrupt;

d/ It has its operation registration certificate revoked under Clause 1, Article 32 of this Law.

2. Within 7 working days after a property auction business terminates its operation, the provincial-level Justice Department shall notify such in writing to the tax office, statistics office and planning and investment office of the locality where the business is located; and publish on its portal information on termination of operation of the business.

Article 32. Revocation of operation registration certificates of property auction businesses

1. A property auction business shall have its operation registration certificate revoked in the following cases:

a/ It no longer satisfies the conditions prescribed in Clause 3, Article 23 of this Law;

b/ Contents declared in its operation registration dossier are untruthful;

c/ It has ceased its operation for one year without notifying such to the provincial-level Justice Department of the locality where it has made operation registration;

d/ It has been administratively sanctioned for failure to send reports under Point l, Clause 2, Article 24 of this Law and relapses into violation;

dd/ Another case as decided by the court.

2. The revocation of the operation registration certificate of a property auction business shall be carried out according to the following order and procedures:

a/ For the case specified at Point a, Clause 1 of this Article, the provincial-level Justice Department shall request in writing the property auction business to satisfy the conditions prescribed in Clause 3, Article 23 of this Law within 30 days after being requested. Upon the expiration of the above time limit, if the property auction business still fails to satisfy the conditions prescribed in Clause 3, Article 23 of this Law, the provincial-level Justice Department shall issue a decision to revoke the operation registration certificate of the business;

b/ For the case specified at Point b, Clause 1 of this Article, the provincial-level Justice Department shall issue a notice on violation of the business and decide to revoke the operation registration certificate of the business;

c/ For the case specified at Point c, Clause 1 of this Article, the provincial-level Justice Department shall send a written notice to the at-law representative of the business, requesting him/her to come to the office of the provincial-level Justice Department to make explanation. After 10 working days from the date of expiration of the time limit stated in the notice, if the requested representative fails to come to the office of the provincial-level Justice Department, it shall issue a decision to revoke the operation registration certificate of the business;

d/ For the case specified at Point d, Clause 1 of this Article, the provincial-level Justice Department shall issue a decision to revoke the operation registration certificate of the business.

3. Provincial-level Justice Departments of the localities where property auction businesses have made their operation registration shall publish on their portals information on the revocation of operation registration certificates of such businesses; and notify the revocation in writing to tax offices, statistics offices and planning and investment offices of the localities where the businesses have made their operation registration and report it to the Ministry of Justice.

Chapter III

ORDER AND PROCEDURES FOR PROPERTY AUCTION

Article 33. Property auction service contract

1. A property seller shall sign a property auction service contract with a property auction organization to conduct property auction. Such a contract shall be made in writing and must comply with the civil law and this Law.

2. When signing the property auction service contract, the property seller shall provide the property auction organization with documents of title to prove his/her right to own, use or sell property in accordance with law and take responsibility before law for such documents.

3. The property auction organization shall check information on the right to sell property provided by the property seller, and is not responsible for the value and quality of the auctioned property unless this organization fails to adequately and accurately provide bidders with necessary information on the value and quality of the auctioned property under the property auction service contract.

4. Rights and obligations of the property auction organization and property seller must comply with the property auction service contract, this Law, civil law, and other relevant laws.

5. The property seller or property auction organization may unilaterally terminate the performance of the property auction service contract in accordance with the civil law before the property auction organization receives the bidder’s dossier for participation in auction, unless otherwise prescribed by law.

6. The property seller may cancel the property auction service contract when having one of the following grounds:

a/ The auction is held by an organization without the property auction function or conducted by an individual other than an auctioneer, unless it is held by a property auction council;

b/ The property auction organization intentionally allows an unqualified person to participate in an auction who later becomes the winning bidder;

c/ The property auction organization commits one of the following acts: failing to publicly display information on property auction; failing to disclose information on property auction; improperly implementing regulations on the sale of auction dossiers or organizations registering for participation in auction; or impeding or restricting bidders from registering for participation in auction;

d/ The property auction organization colludes or is in cahoots with bidders during the auction, thus falsifying information on the auctioned property, auction dossier or property auction results;

dd/ The property auction organization holds an auction at variance with regulations on auction forms and methods according to the rules of the auction, thus falsifying the property auction results.

Article 34. Rules of an auction

1. A property auction organization shall issue rules to be applicable to each auction before the date of public display of information on property auction.

2. Rules of an auction must have the following principal contents:

a/ Name of property or list of property items, quantity and quality of the auctioned property; place where the auctioned property is located; and documents of title proving the ownership or use right over the auctioned property;

b/ Time and venue for checking the auctioned property;

c/ Time and venue for selling auction dossiers;

d/ Reserve price of the auctioned property, in case such price is publicized;

dd/ Money amount paid for buying auction dossiers, and advance payment;

e/ Time, venue, conditions and method of registration for participation in auction;

g/ Time and venue for holding the auction;

h/ Form and method of auction;

i/ Cases of deprival of the right to participate in auction, and cases ineligible for refund of advance payment.

3. A property auction organization shall publicize the rules of an auction.

Article 35. Public display of information on property auction

1. A property auction organization shall publicly display information on property auction at:

a/ Its head office, place where the property is displayed (if any) and place where the auction is to be held at least 7 working days before the auction opens, for movable property;

b/ Its head office, place where the auction is to be held and commune-level People’s Committee of the locality where the property is located at least 15 working days before the auction opens, for immovable property.

2. To-be-displayed principal information details include:

a/ Names and addresses or the property auction organization and property seller;

b/ The contents prescribed at Points a, b, c, d, dd, e, g and h, Clause 2, Article 34 of this Law.

3. The property auction organization shall keep documents and images on public display of information on property auction as prescribed in Clauses 1 and 2 of this Article in auction dossiers. In case of public display of information on property auction at the commune-level People’s Committee of the locality where the auctioned property is located, the property auction organization shall keep documents and images on such display or have such display certified in writing by the commune-level People’s Committee.

4. In addition to public display of information on property auction prescribed in Clauses 1 and 2 of this Article, the property auction organization shall disclose information on property auction under Article 57 of this Law at the request of the property seller.

Article 36. Checking of auctioned property

1. From the date of public display of information on property auction to the date an auction opens, a property auction organization shall permit bidders to check property or property samples for at least 2 consecutive days. The name of the property seller and information on property shall be shown on property or property samples.

2. From the date of public display of information on property auction to the date an auction opens, for the auctioned property being property rights or property subject to ownership or use right registration, the property auction organization shall permit bidders to check documents of title and relevant documents for at least 2 consecutive days.

Article 37. Venue of auction

An auction shall be held at the head office of a property auction organization, place where the auctioned property is located or another place as agreed upon by the property seller and property auction organization, unless otherwise prescribed by law.

Article 38. Registration for participation in auction

1. An individual or organization shall register for participation in an auction by submitting a valid auction dossier and making an advance payment to a property auction organization in accordance with this Law and other relevant laws. A bidder must satisfy the law-prescribed conditions, if any, for participation in an auction, and may authorize in writing another person to participate in the auction on the bidder’s behalf.

2. A property auction organization shall sell auction dossiers and receive them within working hours continuously from the date of public display of information on property auction to the date which is 2 days earlier than the date an auction opens.

3. In addition to the conditions for registration for participation in an auction prescribed in this Law and other relevant laws, the property seller or property auction organization may not set out any other requirements or conditions on bidders.

4. The following persons may not register for participation in an auction:

a/ A person having no civil act capacity, person having lost his/her civil act capacity or having his/her civil act capacity restricted, person having difficulties in cognition or behavior control, or person having no cognition or behavior control ability at the time of registration for participation in auction;

b/ A person working in the property auction organization that conducts the auction; parent, spouse, child or blood sibling of the auctioneer; person directly engaged in property appraisal or valuation; or parent, spouse, child or blood sibling of the person directly engaged in property appraisal or valuation;

c/ A person authorized by the property owner to realize property, person entitled to decide on the sale of property, person signing the property auction service contract, or person entitled to decide on the sale of others’ property in accordance with law;

d/ A parent, spouse, child or blood sibling of the person defined at Point c of this Clause;

dd/ A person not entitled to buy the auctioned property under regulations applicable to such kind of property.

Article 39. Advance payment and handling thereof

1. A bidder shall make an advance payment, which shall be agreed upon by the property auction organization and property seller and must be between five percent and twenty percent of the reserve price of the auctioned property.

The advance payment shall be deposited into a separate payment account opened by the property auction organization at a commercial bank or foreign bank branch in Vietnam. If the advance payment is valued at under five million Vietnam dong, a bidder may make it directly to the property auction organization. The bidder and property auction organization may reach agreement on substitution of bank guarantee for advance payment.

2. The property auction organization may only collect an advance payment from a bidder within 3 working days before the date an auction opens, unless otherwise agreed upon by this organization and bidder but the collection must be earlier than the date the auction opens. The property auction organization may not use the bidder’s advance payment for any other purpose.

3. The bidder may refuse to participate in an auction and be refunded the advance payment in case of a change in the reserve price, quantity or quality of property with information thereon already displayed or disclosed, and may receive any interest on such advance payment.

4. In case the bidder does not win the auction the property auction organization shall refund the advance payment and pay an interest thereon (if any) within 3 working days after the date the auction ends or within another time limit agreed upon by the parties, except the case specified in Clause 6 of this Article.

5. If the bidder wins the auction, the advance payment and interest thereon (if any) shall be converted into a deposit to secure the performance of a transaction or a contract on purchase and sale of the auctioned property or an obligation to buy the auctioned property after obtaining approval from a competent agency. The deposit shall be handled in accordance with the civil law and other relevant laws.

6. The bidder is not entitled to advance payment refund in the following cases:

a/ He/she has made the advance payment but fails to participate in the auction or price announcement session not due to a force majeure event;

b/ He/she is deprived of the right to participate in the auction for one of the violations prescribed in Clause 5, Article 9 of this Law;

c/ He/she refuses to sign the auction minutes under Clause 3, Article 44 of this Law;

d/ He/she withdraws the offered bid or accepted price under Article 50 of this Law;

dd/ He/she rejects the auction winning result under Article 51 of this Law.

7. In addition to the cases specified in Clause 6 of this Article, the property auction organization may not specify any other cases where the bidder is not entitled to advance payment refund in the rules of an auction.

8. The advance payment prescribed in Clause 6 of this Article belongs to the property seller. In case the property seller is a state agency, the advance payment, after subtracting property auction expenses, shall be remitted into the state budget in accordance with law.

Article 40. Auction forms and methods

1. A property auction organization shall reach agreement with a property seller on selecting one of the following auction forms:

a/ Oral auction;

b/ Casting bid tickets directly at an auction;

c/ Delivering sealed bid tickets;

d/ Online auction.

2. Auction methods include:

a/ Ascending-price auction;

b/ Descending-price auction.

3. Auction forms and methods shall be stated in the rules of an auction and notified to bidders.

4. The Government shall detail Point d, Clause 1 of this Article.

Article 41. Oral auction

1. An auctioneer shall conduct an oral auction in the following order:

a/ Introducing himself/herself and his/her assistant; publicizing a list of bidders and taking the roll call for identifying bidders;

b/ Reading out the rules of the auction;

c/ Introducing every auctioned property item;

d/ Repeating the reserve price, in case such price is publicized;

dd/ Notifying bid increment/decrement and the maximum interval between times of bid offer and price setting;

e/ Delivering bid tickets to bidders;

g/ Guiding methods of offering bids and accepting set prices, and answering questions raised by bidders;

h/ Conducting the offer of bids and acceptance of set prices under Clauses 2 and 3 of this Article.

2. The offer of bids in case of ascending-price auction is prescribed as follows:

a/ The auctioneer requests bidders to offer bids;

b/ Bidders offer bids. A bid offered must at least equal the reserve price, in case such price is publicized. A bidder shall offer a bid higher than that offered by the preceding bidder;

c/ The auctioneer announces every bid offered by a bidder and asks other bidders to continue offering bids;

d/ The auctioneer declares the bidder who has offered the highest bid to be the winning bidder after having repeated three times the highest bid which is higher than the reserve price while no one else offers a higher bid.

3. The acceptance of set prices in case of descending-price auction is prescribed as follows:

a/ The auctioneer sets a price for bidders to accept. A person who accepts the reserve price is the winning bidder;

b/ The auctioneer announces a bid decrement and continues conducting the auction if no one accepts the reserve price or decreased price. A person who accepts the decreased price is the winning bidder;

c/ If two or more persons accept the reserve price or decreased price, the auctioneer shall hold a lot draw for selecting the winning bidder.

Article 42. Auction in form of directly casting bid tickets

1. The auctioneer shall conduct an auction in the form of casting bid tickets directly at the auction in the following order:

a/ Performing the jobs specified at Points a, b, c, d, dd, e and g, Clause 1, Article 41 of this Law;

b/ Repeating requirements for a valid bid ticket, and time for ticket writing;

c/ Conducting the offer of bids and acceptance of set prices under Clauses 2 and 3 of this Article.

2. The offer of bids in case of ascending-price auction is prescribed as follows:

a/ Each of bidders is delivered a bid offer ticket for him/her to write a bid he/she wants to offer. Upon the expiration of the time limit for writing in the ticket, the auctioneer asks the bidders to submit their bid tickets or to cast them into the ticket box; counts the number of tickets delivered and number of tickets collected; announces each bid and the highest bid under the supervision of at least one bidder;

b/ The auctioneer announces the highest bid in such round of auction and asks the bidders to continue offering bids for the subsequent round. The reserve price for the subsequent round of auction is the highest bid offered in the preceding round;

c/ The auction finishes when no one offers a bid. The auctioneer declares the person who has offered the highest bid to be the winning bidder;

d/ If two or more persons offer the same highest bid, the auctioneer holds another auction among these persons for selecting the winning bidder. If one of these persons rejects holding another auction or none of them offers a higher bid, the auctioneer holds a lot draw to select the winning bidder.

3. The acceptance of set prices in case of descending-price auction is prescribed as follows:

a/ Every bidder shall be delivered a price acceptance ticket for him/her to write the auctioneer-set reserve price he/she accepts. Upon the expiration of the time limit for ticket writing, the auctioneer shall ask the bidders to submit their bid tickets or to cast them into the ticket box; and counts the number of tickets delivered and number of tickets collected;

b/ The auctioneer shall announce the price acceptance by each bidder under supervision of at least one bidder;

c/ The auctioneer shall declare the person who accepts the reserve price to be the winning bidder. If no one accepts the reserve price, the auctioneer shall announce a bid decrement and conduct the casting of bid tickets with the decreased price;

d/ If two or more persons accept the reserve price or decreased price, the auctioneer holds a low draw for selecting the winning bidder.

4. The property seller and property auction organization shall reach agreement on the method of casting bid tickets and number of auction rounds prescribed in Clauses 2 and 3 of this Article.

Article 43. Auction in form of delivering sealed bid tickets

1. When registering for participation in an auction, a bidder shall be delivered a bid offer ticket and provided with guidance on the method of writing in the ticket, deadline for submitting the ticket, and time of the price announcement session. The property auction organization shall introduce to the bidders each item of auctioned property, repeat the reserve price in case such price is publicized, answer questions raised by the bidders, and perform other jobs as stated in the rules of the auction.

2. A bidder’s bid offer ticket shall be put into an envelop made of a security material and bear the signature of the bidder at edges of the ticket-containing envelope. This ticket shall be sent by post or submitted directly to the property auction organization for being cast into the ticket box. The ticket box shall be sealed up right after the deadline for ticket receipt.

3. At the session for announcing bids offered by bidders, the auctioneer introduces himself/herself and his/her assistant; reads out the rules of the auction; announces the list of bidders and takes the roll call for identifying bidders; and announces the number of tickets delivered and number of tickets collected.

The conducting auctioneer shall invite at least one bidder to supervise the intactness of the ticket box. If no opinion is given on the supervision result, the auctioneer shall break the seal of the ticket box.

The auctioneer shall invite at least one bidder to supervise the intactness of every bid offer ticket; tear open every ticket, announce the number of valid tickets and number of invalid tickets, every bid offer ticket and ticket with the highest bid, and announce the person who has offered the highest bid to be the winning bidder.

4. If two or more persons offer the highest bid, right at the bid announcement session, the auctioneer shall hold another auction for these persons in order to select the winning bidder. The auctioneer shall decide to hold an oral auction or an auction by directly casting bid tickets. If one of these persons rejects holding another auction or none of them offers a higher bid, the auctioneer shall hold a lot draw for selecting the winning bidder.

Article 44. Auction minutes

1. An auction ends when the auctioneer announces the winning bidder or when it fails as prescribed in Clause 1, Article 52 of this Law.

2. Developments of the auction shall be recorded in an auction minutes, which shall be made at the auction and signed by the auctioneer, minutes maker, winning bidder, property seller, and representatives of bidders. For an auction conducted by a property auction council, its minutes must also bear the signature of the council’s chairperson.

3. The winning bidder who refuses to sign the auction minutes shall be regarded as having refused to conclude a contract on purchase and sale of the auctioned property or to buy the auctioned property, for property of which auction result is subject to approval by a competent agency.

4. The auction minutes must bear a seal of the property auction organization; for an auction conducted by a property auction council, its minutes must bear a seal of the competent person who has decided to form the council.

Article 45. Transfer of auction dossiers

1. Within 1 working day after an auction ends, the property auction organization shall record the property auction results in the Property Auction Register and notify such results in writing to the property seller. For an auction conducted by a property auction council, within 1 working day after the auction ends, the council shall notify in writing the property auction results to the competent person who has decided to form the council.

2. Within 3 working days after the auction ends, the property auction organization or property auction council shall transfer the property auction results, property auction minutes and list of winning bidders to the property seller for signing a contract on purchase and sale of the auctioned property or to a competent agency for approving the property auction results, and shall complete relevant procedures, unless otherwise provided by law.

Article 46. Contracts on purchase and sale of auctioned property, approval of property auction results

1. Property auction results serve as a basis for the parties to sign a contract on purchase and sale of the auctioned property or for a competent agency to approve.

2. A contract on purchase and sale of the auctioned property shall be signed between the property seller and winning bidder or between the property seller, winning bidder and property auction organization if so agreed upon by the parties, unless otherwise provided by law. This contract must comply with the civil law.

3. A winning bidder shall be regarded as accepting to sign a contract on purchase and sale of the auctioned property from the time the auctioneer announces the winning bidder, unless the winning bidder refuses to sign the auction minutes under Clause 3, Article 44 of this Law or rejects the auction winning results under Article 51 of this Law. From this time, the rights and obligations of the parties must comply with the civil law and other relevant laws.

4. The order, procedures and competence for approval of property auction results must comply with relevant laws.

Article 47. Rights and obligations of the property seller

1. The property seller has the following rights:

a/ To supervise the process of holding an auction;

b/ To participate in the auction;

c/ To request the property auction organization to stop the auction when having grounds to believe that this organization commits a violation prescribed at Point b or c, Clause 2, Article 9 of this Law;

d/ To request the auctioneer to stop the auction when having grounds to believe that the auctioneer commits a violation prescribed at Point c, Clause 1, Article 9 of this Law or that a bidder commits a violation prescribed at Point b, c or d, Clause 5, Article 9 of this Law;

dd/ To unilaterally terminate or cancel the property auction service contract or contract on purchase and sale of the auctioned property or request the court to declare such contract to be null and void in accordance with this Law and civil law;

e/ Other rights as provided by law.

2. The property seller has the following obligations:

a/ To take responsibility for the auctioned property;

b/ To sign a contract on purchase and sale of the auctioned property or submit property auction results to a competent agency for approval;

c/ To hand the auctioned property and documents of title related to such property to the property buyer as agreed upon in the contract on purchase and sale of the auctioned property or as prescribed by law;

d/ To report to a competent agency on the selection of a property auction organization, developments of the auction and property auction results, in case of auction of state property;

dd/ Other obligations as prescribed by law.

Article 48. Rights and obligations of the winning bidder

1. The winning bidder has the following rights:

a/ To request the property seller to sign a contract on purchase and sale of the auctioned property or submit property auction results to a competent agency for approval in accordance with law;

b/ To receive, and have ownership over, the auctioned property in accordance with law;

c/ To be granted by a competent state agency a certificate of ownership and use rights over the auctioned property, for property subject to ownership or use right registration in accordance with law;

d/ Other rights as agreed upon in the contract on purchase and sale of the auctioned property and as prescribed by law.

2. The winning bidder has the following obligations:

a/ To sign the auction minutes and contract on purchase and sale of the auctioned property;

b/ To make full payment for the auctioned property to the property seller as agreed upon in the contract on purchase and sale of the auctioned property or as prescribed by relevant law;

c/ Other obligations as agreed upon in the contract on purchase and sale of the auctioned property and as prescribed by law.

Article 49. Auction in case only one person registers for participation in auction, one person participates in auction, one person offers bids or one person accepts the set price

1. An auction in case only one person registers for participation in auction, one bidder participates in auction, one person offers bids or one person accepts the set price shall be conducted only after the first auction fails, specifically as follows:

a/ In case of an ascending-price auction, when the time limit for registration for participation in auction has expired but only one person registers for participation in the auction, or more than one person registers for participation in the auction but only one person participates in the auction, or more than one person participates in the auction but only one person offers bids, or more than one person offers bids but only one person offers the highest bid which is at least equal to the reserve price, the property shall be sold to this person if so consented in writing by the property seller;

b/ In case of a descending-price auction, if only one person registers for participation in the auction, or more than one person registers for participation in the auction but only one person participates in the auction and accepts the reserve price or decreased price, the property shall be sold to this person if so consented in writing by the property seller.

2. The property auction prescribed in Clause 1 of this Article shall be conducted only after the order and procedures for auction are completely carried out in accordance with this Law and there is no complaint relating to such order and procedures until the date of auction.

3. An auction minutes must, in addition to the contents prescribed in Clauses 2 and 4, Article 44 of this Law, state that only one person has participated in the auction or only one person offered bids or accepted the valid set price, and contain the consent of the property seller.

Article 50. Withdrawal of offered bids or accepted prices

1. At an ascending-price auction in oral form or in the form of directly casting bid tickets, if the person who has offered the highest bid withdraws such bid before the auctioneer announces the winning bidder, the auction still proceeds with the offering of bids starting again from the bid offered by the preceding person.

2. When announcing bids offered by bidders in case of auction by delivering sealed bid tickets, if the person who has offered the highest bid withdraws such bid before the auctioneer announces the winning bidder, the auction still proceeds with the offering of bids starting again from the bid offered by the preceding person. The auctioneer shall decide on an oral auction or an auction in the form of directly casting bid tickets.

3. At a descending-price auction, if the person who has accepted the reserve price or decreased price withdraws the accepted price before the auctioneer announces the winning bidder, the auction still proceeds with the offering of bids starting again from the bid offered by this person.

4. The person who withdraws the offered bid or accepted price as defined in Clause 1, 2 or 3 of this Article shall be deprived of his/her right to participate in the auction.

Article 51. Rejection of bid winning results

1. In case of an ascending-price auction, after the auctioneer declares the winning bidder but this bidder rejects the bid winning results, the person who has offered the adjacent lower bid will become the winning bidder if such bid plus the advance payment at least equals the bid offered by the rejecting bidder and this person accepts to buy the auctioned property.

If the adjacent lower bid plus the advance payment is smaller than the bid offered by the rejecting bidder or if the person who has offered the adjacent lower bid does not accept to buy the auctioned property, the auction fails.

2. In case of a descending-price auction, after the auctioneer declares the winning bidder but this bidder rejects the bid winning results, the auction still proceeds with the offering of bids starting again from the bid offered by the rejecting bidder. If no one continues to offer a bid, the auction fails.

Article 52. Failing auction

1. An auction shall be considered failing in the following cases:

a/ No one registers for participation in the auction though the time limit for registration has expired;

b/ At the auction, no one offers a bid or no one accepts the set price;

c/ The offered highest bid is lower than the reserve price in case such price is not publicized and an ascending-price auction is conducted;

d/ The winning bidder refuses to sign the auction minutes as prescribed in Clause 3, Article 44 of this Law;

dd/ The person who has offered a bid withdraws such bid, or the person who has accepted the set price withdraws such price as prescribed in Article 50 of this Law while no one else offers another bid;

e/ The case of rejection of the bid winning results prescribed in Article 51 of this Law;

g/ Only one person registers for participation in the auction though the time limit for registration has expired, in case of property auction prescribed in Article 59 of this Law.

2. Within 3 working days after the auction fails, the property auction organization shall return the property and relevant documents of title to the property seller, unless otherwise agreed upon by the parties or otherwise prescribed by law.

3. Property not sold at the auction shall be realized in accordance with law or put for another auction as agreed upon between the property seller and property auction organization.

Article 53. Auction according to summary procedures

1. A property auction organization and property seller shall agree on conducting an auction according to summary procedures in the following cases:

a/ Auction of property for judgment enforcement, or property being confiscated exhibits or means used in commission of administrative violations while the reserve prices of all property items at an auction are under fifty million Vietnam dong;

b/ Auction to be held after the second auction fails;

c/ Auction of property specified in Clause 2, Article 4 of this Law, in case of application of summary procedures.

2. The time limit for the property auction organization to publicly display information on property auction is:

a/ Three working days before an auction opens, for movable property;

b/ Five working days before an auction opens, for immovable property.

3. The property auction organization shall sell auction dossiers and receive them back during working hours continuously from the date of public display of information on property auction to the date which is 1 day earlier than the date an auction opens.

Article 54. Keeping of dossiers

1. The property seller, property auction organization and competent person who has decided to form the property auction council shall keep auction dossiers for 5 years from the date an auction finishes.

2. The order and procedures of dossier keeping must comply with the law on archives.

Chapter IV

AUCTION OF PROPERTY REQUIRED BY LAW TO BE SOLD THROUGH AUCTION

Section 1

GENERAL PROVISIONS

Article 55. Order and procedures for auction of property required by law to be sold through auction

The auction of property specified in Clause 1, Article 4 of this Law must comply with the order and procedures prescribed in Chapter III of this Law and this Chapter.

Article 56. Selection of property auction organizations

1. After a competent person issues a decision on property auction, a property seller shall disclose information on the selection of a property auction organization on its/his/her website and the specialized auction website.

2. A public notice on the selection of a property auction organization must have the following principal contents:

a/ Name and address of the property seller;

b/ Name, quantity and quality of the auctioned property;

c/ Reserve price of the auctioned property;

d/ Criteria for selection of a property auction organization as prescribed in Clause 4 of this Article;

dd/ Time and place for submission of dossiers for registering to become a property auction organization.

3. The property seller shall, based on dossiers for registering to become property auction organizations and criteria specified in Clause 4 of this Article, select a property auction organization and take responsibility for such selection.

4. Criteria for a property auction organization to be selected include:

a/ Having physical foundations and equipment necessary for property auction;

b/ Having a feasible and effective auction plan;

c/ Having capacity, experience and prestige;

d/ Asking for appropriate auction remuneration and auction expenses;

dd/ Being on the Ministry of Justice-publicized list of property auction organizations;

e/ Other criteria suitable to the auctioned property as decided by the property seller.

5. In case the selection of a property auction organization is subject to bidding as required by law, this Law and bidding law shall apply.

Article 57. Disclosure of information on property auction

1. In addition to the provisions on public display of information on property auction in Clauses 1, 2 and 3, Article 35 of this Law, for movable property with a reserve price of at least fifty million Vietnam dong and immovable property, a property auction organization shall disclose information on the auction at least twice on a central- or provincial-level printed newspaper or television of the locality where the auctioned property is located and on the specialized auction website; the interval between times of publicization must be at least 2 working days.

2. In case of auction according to summary procedures under Point b, Clause 1, Article 53 of this Law, the property auction organization shall disclose information on the auction once on a central- or provincial-level printed newspaper or television of the locality where the auctioned property is located.

3. The second disclosure shall be made for at least 7 working days, for movable property, or 15 days, for immovable property, before the date an auction opens. The disclosure mentioned in Clause 2 of this Article shall be made simultaneously with the public display of information on property auction prescribed in Clause 2, Article 53 of this Law.

4. To-be-disclosed information on property auction includes:

a/ Names and addresses of the property auction organization and property seller;

b/ Time and place of auction;

c/ Name of property and place where the auctioned property is located;

d/ Reserve price of the auctioned property in case such price is publicized, and advance payment;

dd/ Time, place, conditions and method of registration for participation in auction.

5. The property auction organization shall keep documents and images on disclosure prescribed in Clauses 1 and 2 of this Article in auction dossiers.

Article 58. Publicization of reserve prices, method of auction

1. A property seller shall publicize the reserve price of the property.

2. The auction of property shall be conducted only in the form of ascending-price auction.

Article 59. Auction of property in case only one person registers for participation in auction, one person participates in auction or one person offers bids

The auction of property in case only one person registers for participation in auction, one person participates in auction or one person offers bids as prescribed in Article 49 of this Law shall not apply to the following property items:

1. State property as defined in the law on management and use of state property;

2. Land use rights upon land allocation with land use levy or land lease by the State in accordance the land law;

3. Other property items not eligible for auction as prescribed by law in case only one person registers for participation in auction, one person participates in auction or one person offers bids.

Section 2

PROPERTY AUCTION COUNCILS

Article 60. Formation of a property auction council

1. The owner of a property item required by law to be sold through auction shall decide to form a property auction council for auctioning property in the following cases:

a/ It is prescribed by law that the auction shall be conducted by the property auction council;

b/ It is impossible to select a property auction organization under Article 56 of this Law.

2. The competent person who has decided to form the property auction council shall take responsibility for all activities of the council.

3. The property auction council must be composed of at least 3 members; the council’s chairperson is the property seller or his/her/its authorized person; and the council’s members include representatives of the same-level finance and justice agencies and related agencies and organizations as prescribed by law. The council may sign a contract with a property auction organization to appoint the auctioneer to conduct the auction.

Article 61. Operation principles of the property auction council

1. An auction conducted by the property auction council must be attended by at least two-thirds of the council’s members.

2. The property auction council shall work on the principles of centralism, collective discussion, and decision by majority votes through showing hands or casting secret ballots. If the numbers of hands shown for and against or numbers of ballots for and against are equal, the council’s chairperson may make a final decision.

3. The property auction council automatically disbands when the auction ends and the auction dossier is transferred under Article 45 of this Law.

Article 62. Rights and obligations of the property auction council

1. The property auction council has the following rights:

a/ To deprive of the right to participate in an auction of, and make a record for handling, a bidder who commits an act of causing disorder at the auction, colludes or is in cahoots with others for price suppression or commits other acts affecting the objectivity and truthfulness of the auction;

b/ To stop the auction and report to the competent person who has decided to form the council for handling violations of the regulations on auction order and procedures or when detecting that the auctioneer colludes or is in cahoots with others for price suppression or commits other acts affecting the objectivity and truthfulness of the auction;

c/ To request valuation and appraisal of the auctioned property;

d/ To select a form of auction specified in Clause 1, Article 40 of this Law for property auction;

dd/ Other rights as provided by law.

2. The property auction council has the following obligations:

a/ The obligations prescribed at Points b and d, Clause 2, Article 24 of this Law;

b/ To issue the operation regulation of the council;

c/ To organize and conduct an auction according to the operation regulation of the council, rules of the auction and relevant laws;

d/ To take responsibility for the auction results before law and the competent person who has decided to form the council;

dd/ To settle complaints and denunciations during the auction; to receive and settle according to its competence or propose the competent person who has decided to form the council to settle complaints filed after the auction; to pay damages in accordance with law;

e/ To report on the property auction results to the competent person who has decided to form the council;

g/ Other obligations as prescribed by law.

Article 63. Tasks and powers of the chairperson and members of the property auction council

1. The chairperson of the property auction council has the following tasks and powers:

a/ To organize the exercise of the rights and performance of the obligations of the council under Article 62 of this Law;

b/ To preside over meetings of the council; to assign tasks to each member of the council;

c/ To conduct an auction or assign a member of the council or an auctioneer to conduct the auction under the operation regulation of the council;

d/ Other tasks and powers as stated in the operation regulation of the council and relevant laws.

2. Members of the property auction council shall perform the tasks assigned by the council’s chairperson and take responsibility before the council’s chairperson.

Section 3

AUCTION OF NON-PERFORMING LOANS AND COLLATERAL OF NON-PERFORMING LOANS

Article 64. Auction of non-performing loans and collateral of non-performing loans

1. The wholly state-owned organization established by the Government for handling non-performing loans of credit institutions may only auction non-performing loans and collateral of non-performing loans specified at Point o, Clause 1, Article 4 of this Law.

2. For non-performing loans and collateral of non-performing loans put for auction in accordance with law, the wholly state-owned organization established by the Government for handling non-performing loans of credit institutions shall sign a property auction service contract with a property auction organization or shall auction property by itself. The property auction must comply with the order and procedures prescribed in this Law.

Article 65. Rights and obligations of the wholly state-owned organization established by the Government for handling non-performing loans of credit institutions in property auction activities

1. The wholly state-owned organization established by the Government for handling non-performing loans of credit institutions has the following rights:

a/ To sign labor contracts with auctioneers practicing at the organization;

b/ To assign an auctioneer to conduct an auction;

c/ To hold an auction at its head office, the place where the auctioned property is located or another place as appropriate for the auction;

d/ Other rights as provided by the law on property auction.

2. The wholly state-owned organization established by the Government for handling non-performing loans of credit institutions has the following obligations:

a/ To conduct an auction according to the principles, order and procedures prescribed in this Law and take responsibility for the property auction results;

b/ To issue the rules of an auction under Article 34 of this Law and other relevant laws;

c/ To hand the auctioned property and relevant documents of title to the property buyer;

d/ To obtain the written consent of the property seller in accordance with law, in case of auction of property specified in Article 49 of this Law;

dd/ To take responsibility for the value and quality of the auctioned property, in case it conducts the auction by itself;

e/ To pay compensation for damage it has caused during auction in accordance with law;

g/ To keep a book for monitoring the auctioned property and an auction register;

h/ To request the provincial-level Justice Department of the locality where it is headquartered to grant auctioneer cards to auctioneers practicing at the organization;

i/ To pay occupational liability insurance premiums for its auctioneers under Article 20 of this Law;

k/ To report to the Ministry of Justice on the list of its practicing auctioneers on an annual basis or upon request;

l/ To report to the Ministry of Justice and the State Bank of Vietnam on property auction activities on a biannual or an annual basis or upon request;

m/ To fulfill competent state agencies’ requests on examination and inspection of property auction activities;

n/ Other obligations as prescribed by law.

3. The wholly state-owned organization established by the Government for handling non-performing loans of credit institutions is prohibited to commit the following acts:

a/ Colluding or being in cahoots with bidders, price assessment organizations, organizations appraising the auctioned property or other organizations or individuals to falsify information on auctioned property, auction dossiers or property auction results;

b/ Impeding or causing difficulties to bidders in buying auction dossiers, registering for participation in auction, participating in auction or delivering and receiving the auctioned property;

c/ Receiving any money amount, property or profit from bidders in addition to auction expenses and other service charges relating to the auctioned property as prescribed by law;

d/ Other prohibited acts under relevant laws.

4. The Government shall detail:

a/ The assessment of reserve prices of non-performing loans and collateral of non-performing loans;

b/ The establishment of a council for auction of high-value non-performing loans and collateral of non-performing loans.

Chapter V

AUCTION REMUNERATION, PROPERTY AUCTION EXPENSES

Article 66. Auction remuneration and property auction expenses

1. Auction remuneration and property auction expenses shall be agreed upon by the property seller and property auction organization in the property auction service contract. In case of auction of property mentioned in Clause 1, Article 4 of this Law, auction remuneration shall be determined based on service charge brackets set by the Ministry of Finance.

2. Property auction expenses include the expense for public display and notification of information and other actual reasonable expenses for property auction as agreed upon by the property seller and property auction organization.

Article 67. Charges for the service of carrying out the procedures for transfer of rights to own, use and manage, and for other services relating to, auctioned property

An individual or organization that asks for and is provided by a property auction organization with the service of carrying out the procedures for transfer of the rights to own, use and manage, and for other services relating to, the auctioned property shall pay a service charge to the property auction organization as agreed by the parties.

Article 68. Management and use of auction remuneration, property auction expenses, service charges and other revenues

1. The management and use of auction remuneration, property auction expenses, service charges and other revenues of property auction service centers must comply with the financial regulations applicable to public non-business units having revenues.

2. The management and use of auction remuneration, property auction expenses, service charges and other revenues of property auction enterprises must comply with law.

Chapter VI

HANDLING OF VIOLATIONS, CANCELLATION OF PROPERTY AUCTION RESULTS, PAYMENT OF DAMAGES

Article 69. Handling of violations committed by auctioneers, property auction organizations, property auction councils or the wholly state-owned organization established by the Government for handling non-performing loans of credit institutions

1. An auctioneer who commits one of the acts prescribed in Clause 1, Article 9, or violates the provisions of Clause 2, Article 19 or other provisions, of this Law shall, depending on the nature and severity of his/her violation, be disciplined, administratively sanctioned or examined for penal liability and, if causing damage, pay damages in accordance with law.

2. A property auction organization, a property auction council or the wholly state-owned organization established by the Government for handling non-performing loans of credit institutions that commits one of the acts prescribed in Clause 2 or 3, Article 9, violates the provisions of Clause 2, Article 24, commits one of the acts prescribed in Clause 3, Article 65, or violates other provisions, of this Law shall, depending on the nature and severity of its violation, be disciplined, administratively sanctioned or examined for penal liability and, if causing damage, pay damages in accordance with law.

Article 70. Handling of violations committed by bidders, winning bidders or related individuals and organizations

A bidder, winning bidder or related person or organization that commits one of the acts prescribed in Clause 5, Article 9, or violates other provisions, of this Law shall, depending on the nature and severity of his/her/its violation, be disciplined, administratively sanctioned or examined for penal liability and, if causing damage, pay compensation in accordance with law.

Article 71. Handling of violations committed by property sellers

A property seller that commits one of the acts prescribed in Clause 4, Article 9, or violates the provisions of Clause 2, Article 47 or other provisions, of this Law shall, depending on the nature and severity of its/his/her violation, be disciplined, administratively sanctioned or examined for penal liability and, if causing damage, pay compensation in accordance with law.

Article 72. Cancellation of property auction results

Property auction results shall be cancelled in the following cases:

1. The cancellation of property auction results is agreed upon between the property seller, property auction organization and winning bidder or the cancellation of the conclusion of the contract on purchase and sale of the auctioned property or cancellation of this contract is agreed upon between the property seller and winning bidder, unless the auction causes damage or affects the interests of the State or lawful rights and interests of individuals and organizations;

2. The property auction service contract or contract on purchase and sale of the auctioned property is declared null and void by the court under the civil law in case the winning bidder commits the act prescribed at Point b, Clause 5, Article 9 of this Law;

3. The property auction service contract is cancelled under Clause 6, Article 33 of this Law;

4. The property seller, bidder, winning bidder, property auction organization or auctioneer commits an act of collusion or price suppression during the auction, thus falsifying information on the auctioned property or auction dossier or property auction results;

5. As decided by the person with administrative sanctioning competence in case of auction of state property when there is one of the grounds specified in Clause 6, Article 33 of this Law.

Article 73. Legal consequences of cancellation of property auction results

In case of cancellation of property auction results under Clause 2, 3, 4 or 5, Article 72 of this Law, the parties shall restore the original state of, and return to one another, the received property or pay cash if they are unable to return the property in kind. The party at fault that causes damage shall pay compensation in accordance with law.

Article 74. Dispute settlement

For a dispute between the parties to a property auction service contract or contract on purchase and sale of the auctioned property, these parties may conduct a negotiation or conciliation or request a competent agency to settle the dispute in accordance with law.

Article 75. Filing of complaints or lawsuits about property auction conducted by a property auction council

1. A bidder, winning bidder or person with related rights and obligations may file a complaint about a decision or an act issued or committed by a property auction council or its member when having grounds to believe that such decision or act infringes upon his/her lawful rights and interests.

2. The person competent to form a property auction council shall settle a complaint within 30 days after receiving it.

3. Upon the expiration of the time limit prescribed in Clause 2 of this Article, if his/her/its complaint remains unsettled or if disagreeing with the complaint settlement decision of the person competent to form a property auction council, the bidder, winning bidder or person with related rights and obligations may file a lawsuit at court in accordance with law.

Article 76. Filing of denunciations about property auction activities

1. A citizen may file a denunciation with a competent agency, organization or person about a violation of the property auction regulations in accordance with law.

2. The settlement of denunciations in property auction activities must comply with the law on denunciations.

Chapter VII

STATE MANAGEMENT OF PROPERTY AUCTION

Article 77. Responsibilities of the Government for state management of property auction

1. The Government shall perform the unified state management of property auction.

2. The Ministry of Justice shall take responsibility before the Government for performing the state management of property auction, having the following tasks and powers:

a/ To submit to competent state agencies for promulgation or promulgate according to its competence legal documents on property auction organization and operation and policies and strategies on development of auction profession;

b/ To issue, or assign socio-professional organizations of auctioneers to issue, the code of professional ethics of auctioneers;

c/ To issue, manage, and guide the use of, forms applicable in property auction activities, books for monitoring auctioned property and property auction registers;

d/ To set a framework program on auction training courses and auction training institutions; and auction practice internship and examination of auction practice internship results;

dd/ To grant, revoke and re-grant auction practice certificates;

e/ To develop and manage a specialized property auction website; to guide and organize the publicization of information on this website;

g/ To conduct examination and inspection, and handle violations in the organization and operation of property auction organizations and auction activities carried out by the wholly state-owned organization established by the Government for handling non-performing loans of credit institutions; and the organization and operation of auctioneers’ socio-professional organizations according to its competence;

h/ To summarize and report on property auction organization and operation;

i/ To carry out international cooperation in property auction;

k/ To perform other tasks and exercise other powers in accordance with this Law and other relevant laws.

Article 78. Responsibilities of ministries and ministerial-level agencies

1. Ministries and ministerial-level agencies shall, within the ambit of their tasks and powers, coordinate with the Ministry of Justice in performing the state management of property auction activities.

2. Responsibilities of the Ministry of Finance:

a/ To guide financial regulations in property auction activities;

b/ To provide the determination of reserve prices of auctioned property under its competence in accordance with law;

c/ To prescribe the collection, remittance, management and use of charges for appraisal of property auction practice criteria, operation registration conditions for property auction enterprises, grant of auction practice certificates and operation registration certificates of property auction enterprises;

d/ To provide the collection, payment, management and use of proceeds from the sale of auction dossiers and bidder-made advance payments which are non-refundable in accordance with law;

dd/ To set auction remuneration brackets.

Article 79. Responsibilities of provincial-level People’s Committees

1. Provincial-level People’s Committees shall perform the state management of property auction activities in localities, having the following tasks and powers:

a/ To organize the implementation of, and disseminate the law on property auction and policies on development of property auction profession;

b/ To organize the registration of operation of property auction enterprises and their branches;

c/ To decide on the appointment and relief from office of heads of property auction service centers;

d/ To ensure payrolls, physical foundations and working conditions for property auction service centers in accordance with regulations on public non-business units with revenues; to support the maintenance of security and order for auctions at the request of property auction organizations;

dd/ To consider and approve a scheme on autonomy mechanism applicable to property auction service centers, a scheme on transformation of property auction service centers into enterprises in case it is unnecessary to maintain these centers, and a scheme on dissolution of property auction service centers in case it is impossible to transform these centers into enterprises after reaching agreement with the Ministry of Justice;

e/ To conduct examination and inspection, and handle violations in property auction organization and operation in localities under their competence;

g/ To annually report on property auction organization and operation in localities to the Ministry of Justice;

h/ To perform other tasks and exercise other powers in accordance with law.

2. Provincial-level Justice Departments shall assist provincial-level People’s Committees in performing the state management of property auction activities in localities.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 80. Transitional provisions

1. Auction practice certificates granted under the Government’s Decree No. 17/2010/ND-CP of March 4, 2010, on property auction, remain valid.

2. Within 2 years after this Law takes effect, property auction enterprises established before the effective date of this Law that wish to continue property auction activities must satisfy the conditions prescribed in Clause 3, Article 23 of this Law and shall register their operation with provincial-level Justice Departments under Article 25 of this Law. If failing to satisfy the conditions prescribed in Clause 3, Article 23, and failing to register their operation under Article 25, of this Law, these enterprises shall terminate property auction activities.

The Government shall provide detailed regulations on operation registration for property auction enterprises prescribed in this Clause.

3. For property auction under property auction contracts signed before the effective date of this Law, if public display or publicization of information on property auction has not yet been made, the order and procedures for public display or publicization of information on, and organization of, property auction must comply with this Law.

For an auction to be conducted by a property auction council as required by law, if this council has been formed but public display or publicization of information on property auction has not yet been made, the council shall apply the auction order and procedures and other relevant provisions of this Law for conducting the auction.

4. The collection, remittance, management and use of property auction charges and charges for participation in property auction, and financial regulations applicable to property auction activities must comply with the law on property auction service charges, charges for participation in property auction and financial regulations applicable to property auction activities until July 1, 2017.

Article 81. Effect

1. This Law takes effect on July 1, 2017, except the provisions of Clause 2 of this Article.

2. Clause 4, Article 80 of this Law takes effect on January 1, 2017.

This Law was passed on November 17, 2016, by the XIVth National Assembly of the Socialist Republic of Vietnam at its 2nd session.